Question: If the consumption function is given a} Assume that GDP {Y} is 3,000. Consumption (C) is given by the equation C = 1,+2f3[:}'T]. Investment {I}

If the consumption function is given

If the consumption function is given a} Assume that GDP {Y} is

a} Assume that GDP {Y} is 3,000. Consumption (C) is given by the equation C = 1,+2f3[:}'T]. Investment {I} is given by the equation I = 1, Ulr, where r is the real interest rate, in percent. Taxes (T) are 2,000, and government spending (G) is 2,500. i. In this economy, compute private saving, puhlic saving, and national saving. (4 points) ii. Find the equilibrium interest rate. [3 points)

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